Nebraska Advantage and Tax Structure

Highlights of the Nebraska tax structure

    • Sales-only formula used to calculate corporate income tax liability
    • No state property tax
    • No inventory tax
    • No personal property tax on intangibles
    • No sales tax on raw materials when used as ingredients or component parts in manufacturing operations
    • No sales tax on sales of energy for processing or manufacturing purposes
    • No sales tax on water used exclusively in manufacturing and processing
    • No sales tax on qualified agricultural machinery and equipment
    • No sales tax on manufacturing machinery, equipment, and related services
    • Sales and use tax refunds are available on qualified air and water pollution control equipment
    • Sales and use tax refunds are available on property qualifying for certain investment incentives
    • Sales and use tax refunds for data center and cloud computing operations
    • Personal property tax exemptions for data center and cloud computing operations

Nebraska’s New Generation of Economic Development Incentives

The Nebraska Advantage package was designed to create a business climate that makes Nebraska the preferred location for starting and growing your business. The Nebraska Advantage rewards businesses that invest in the state and hire Nebraskans. In this progressive, pro-business tax climate, corporate income and sales taxes are reduced or virtually eliminated. This year, the Nebraska Legislature passed LB895 – the Nebraska Super Advantage – adding Super Tier 6 to the already-competitive incentives package.

The Nebraska Advantage package benefits businesses with:

      • Investment credits
      • Wage credits
      • Sales tax refund
      • Customized job training
      • State and local sales tax exemptions for purchases of manufacturing machinery, equipment and related services
      • Research and development tax credits
      • Microenterprise tax credits
      • Inventory tax exemptions

Nebraska also offers:

      • Employees with an unmatched work ethic
      • Central location offering an integrated system of interstates, mainline railroads, and airports
      • Industrial sites and buildings ready for immediate occupancy
      • A 100% public power system – the only state that offers it – providing customers with electrical power at some of the lowest rates in the nation

Related links:

Nebraska Dept. of Revenue – Nebraska Advantage Act – http://www.revenue.nebraska.gov/incentiv/neb_adv/312_info.html

Nebraska Dept. of Economic Development – Tax Incentives – http://neded.org/business/tax-incentives